Non-warrantable condo mortgage

[Jash Sayani]

Hi,

I have been looking at properties in Florida for rental. I see that most condos are non-warrantable (more than 51% rentals) and hence Frannie Mae or Freddie Mac will not buy them. Hence they are non-warrantable.

I need to get a pre-approval for mortgage to bid on the condos. Do the big banks (Wells Fargo, BoA, US Bank, etc) provide non-warrantable mortgages, and if they do, are the rates higher than conventional mortgages?

Also, is it advisable to buy a non-warrantable rental property?

Thanks.